UPDATE - UBS Downgraded Boston Scientific (BSX) to Neutral; Stent & ICD Markets Are About as Tough as They Get
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Price: $49.61 +0.49%
Rating Summary:
33 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
33 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS downgraded Boston Scientific (NYSE: BSX) from Buy to Neutral. PT lowered from $7.91 to $7.65.
UBS analyst says, "We are downgrading our rating on BSX in light of challenging outlooks for core markets. While market headwinds are well-understood & margin expansion can drive bottomline growth, we believe BSX could still remain range-bound until sustainable rev growth improves, perhaps not occurring until '13-'14. Additionally, continued pipeline expansion & commercial repositioning are very important for BSX; we think mgmt’s actions to date have been constructive, but lack of a permanent CEO presents another consideration for investors."
"We update our model to reflect Johnson&Johnson (NYSE: JNJ) exiting stents, ICD softness, FX & flat share count. Our ’11 estimates are within guidance; lower op-ex may lead to some upside. We now model ’12 rev / EPS growth of 2.5% (includes 1% from JNJ) / 18%, driven by a 1-time step-up in stent margins as the Promus profit split w/ Abbott (NYSE: ABT) concludes." (UBS raises FY11 EPS estimate from $0.34 to $0.43 and FY12 from $0.50 to $0.58)
UBS analyst says, "We are downgrading our rating on BSX in light of challenging outlooks for core markets. While market headwinds are well-understood & margin expansion can drive bottomline growth, we believe BSX could still remain range-bound until sustainable rev growth improves, perhaps not occurring until '13-'14. Additionally, continued pipeline expansion & commercial repositioning are very important for BSX; we think mgmt’s actions to date have been constructive, but lack of a permanent CEO presents another consideration for investors."
"We update our model to reflect Johnson&Johnson (NYSE: JNJ) exiting stents, ICD softness, FX & flat share count. Our ’11 estimates are within guidance; lower op-ex may lead to some upside. We now model ’12 rev / EPS growth of 2.5% (includes 1% from JNJ) / 18%, driven by a 1-time step-up in stent margins as the Promus profit split w/ Abbott (NYSE: ABT) concludes." (UBS raises FY11 EPS estimate from $0.34 to $0.43 and FY12 from $0.50 to $0.58)
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